OMG. I'm a little embarrassed now.
Renaming from README to README.md did the trick.
Now the badge is being displayed correctly with the line:

[![build 
status](https://<gitlab_url>/<namespace>/<project>/badges/master/build.svg)](https://<gitlab_url>/<namespace>/<project>/badges/master/build.svg)


Thank you.


W dniu środa, 24 lutego 2016 11:15:01 UTC+1 użytkownik Jeroen de Neef 
napisał:
>
> Hallo Piotr,
>
> What do you get to see when you save the README file? Can you maybe add a 
> screenshot as an attachment?
>
> If you are unsure if GitLab recognizes the file as written in markdown, 
> try to modify the file name from README to README.md
>
> Kind regards,
>
> Jeroen
>
> 2016-02-24 10:32 GMT+01:00 Piotr Lewicki <lewic...@gmail.com <javascript:>
> >:
>
>> Thank you. I forgot to write that I have already used that and it is not 
>> working.
>> On the other hand I'm not sure if Markdown in README file is recognized.
>> When I'm editing README via gitlab-project page I can choose from 
>> drop-down that it's either "text" or "base64". Shouldn't that be a 
>> drop-down to choose wheter it's Markdown or some other wiki syntax?
>>
>> Kind regards,
>> Piotr
>>
>> W dniu środa, 24 lutego 2016 09:34:42 UTC+1 użytkownik Jeroen de Neef 
>> napisał:
>>>
>>> Hi Piotr,
>>>
>>> Try using this.
>>>
>>> [![build 
>>> status](https://ci.my_gitlab_url/projects/PROJECT_INTEGER/status.svg?ref=master)](https://ci.my_gitlab_url/projects/PROJECT_INTEGER?ref=master)
>>>
>>> Just look at 
>>> https://gitlab.com/gitlab-org/gitlab-ce/blob/master/README.md and 
>>> https://gitlab.com/gitlab-org/gitlab-ce/raw/master/README.md and copy 
>>> their method.
>>>
>>> Also, somewhat related to your issue. It seems that the status badge is 
>>> not visible to visitors whom are not authenticated.
>>>
>>> Kind regards,
>>>
>>> Jeroen
>>>
>>> 2016-02-24 9:07 GMT+01:00 Piotr Lewicki <lewic...@gmail.com>:
>>>
>>>> Hello,
>>>> I'm running Gitlab CE 8.5 and I'm not sure how I can add build badges 
>>>> to README correctly.
>>>>
>>>> I can access the badge using "
>>>> https://my_gitlab_url/group/repo_name/badges/master/build.svg"; but 
>>>> adding following line to README doesn't work:
>>>>
>>>> ![build badge](
>>>> https://my_gitlab_url/group/repo_name/badges/master/build.svg)
>>>>
>>>>
>>>> Could you point what I'm doing wrong?
>>>> Thanks in advance
>>>>
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>
>

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